Tag: chapter 7

Articles about Chapter 7 bankruptcy: the type where you don’t repay your debt because you can’t, but can lose your assets: home, car, money and other valuables

fraudulent transfer California

Fraudulent Transfer California: Top Keys

Posted by Hale Andrew Antico on

Fraudulent Transfer in California: Top Keys

Fraudulent transfers. Voidable or fraudulent conveyances. They go with these 17 words: “Have you sold, transferred, or given away anything worth more than $3,000 in the last four years?” It’s a 341(a) question bankruptcy attorneys can recite in their sleep, and one that can cause our debtor clients to have nightmares. The reason is the trap known as fraudulent transfers, voidable transfers, fraudulent conveyances, and the like.

Fraudulent transfer in California comes up typically here in Chapter 7 bankruptcy. Also known as a fraudulent conveyance, it can get your friends and family in hot water. It’s one of the top tips recommended to do or avoid before filing bankruptcy. Fraudulent transfer grief can even include the recipient being taken to court in a lawsuit, and forced to give up something they own. It’s terrifying and a nightmare. Worst of all, it can all happen with the purest of intentions.

That’s right: fraudulent conveyance doesn’t even require fraud.  More on that in a bit.

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Remote 341(a) meeting of creditors

Zoom 341(a) Meeting Remote: What to Expect and How to Prepare

Posted by Hale Andrew Antico on

Zoom 341(a) Meeting of Creditors Remotely: What to Expect

Zoom 341a Meetings, explained by Los Angeles Bankruptcy lawyer

Remote 341(a) Meetings of Creditors by Zoom in bankruptcy are becoming the standard, instead of in-person. Here’s what to expect. They can be terrifying, nerve-wracking, and unpredictable. But there are ways you can prepare for a Zoom 341a Meeting to help it go more smoothly.

As someone who has attended thousands of 341s in person (after coaching my clients with my list of 12 prefiling do’s and don’ts), I answer your 341(a) questions and share with you what to expect at your 341(a) meeting in a post-pandemic world where Zoom 341(a) meetings are more common, and soon becoming the standard.

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Automatic stay and bankruptcy protection

All About the Automatic Stay, the Ultimate Bankruptcy Protection

Posted by Hale Andrew Antico on

All About the Automatic Stay, the Ultimate Bankruptcy Protection

What is the Automatic Stay definition or meaning?

Automatic stay is the bankruptcy protection when a new petition is filed with the court. It protects against starting or continuing any debt collection. It’s a powerful provision, and stops all collection activity, maintaining the status quo on the day the bankruptcy papers are filed. Failure to respect the bankruptcy protection can lead to sanctions against the collecting creditor.

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median income limits

2026 Median Income Limits to Nail Bankruptcy Means Test in Calif

Posted by Hale Andrew Antico on

Median Income Limits to Nail the Bankruptcy Means Test: 2026

The government updated the numbers for 2026 median income limits. Using median household income, it again got easier to qualify for bankruptcy Chapter 7, because of another means test adjustment.  And while bankruptcy may seem to be “just forms,” make sure you check out my list of 12 crucial tips to do or avoid before filing bankruptcy.

The means test for bankruptcy decides who qualifies for Chapter 7 bankruptcy eligibility. The first step of this process is comparing your median household income against the California median income limits set by the Department Of Justice guidelines to see if you earn less than bankruptcy median income limits.

Again, this comparison against the median income is merely the first step, and does not absolutely determine your eligibility for Chapter 7 or not.

2026 Update:  The numbers for the means test adjusted back in November and will be used for the next part of 2026.

Because of the above statement, these will be the first updated 2026 median income limits.

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Figuring the Los Angeles Country median home price size is like trying to calculate the median coin weight when all we have is data about stack size

How to Figure the Los Angeles County Median Home Price (2026)

Posted by Hale Andrew Antico on

How to Figure Los Angeles County Median Home Price (2026)

The Los Angeles County median home price in 2026 can be tricky to determine. There are different sources that say different things. It’s not clear which of the many options will be relied upon by courts and trustees.  Also, while bankruptcy may seem to be “just forms,” make sure you check out my list of 12 crucial tips to do or avoid before filing bankruptcy.

2026 update: there seems to be a consensus among local bankruptcy attorneys as to what the Los Angeles County median home price is (the maximum). More than that, this L.A. median price changes each year. While it’s still untested in court, a lot of the initial uncertainty below has since cleared up. So there are two issues: 1) what is the source of the median price data; and 2) what is the adjustment amount each year. The article below was published before a consensus emerged on the source — still untested in court; it’s still helpful for those “in-between counties.” For current inflation-adjusted figures for the minimum and maximum California homestead exemption, follow that link.

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means test for chapter 7 bankruptcy

Bankruptcy Means Test: a calculator, and a trick to pass (2026)

Posted by Hale Andrew Antico on

Bankruptcy Means Test for Chapter 7 in California, and Everywhere Else

Bankruptcy means test for Chapter 7 was created by Congress to decide if you qualify for liquidation or straight bankruptcy.  Here is what it is, some answers to common bankruptcy means test questions, and a weird tip on passing the bankruptcy means test and its median income limits (ok, it’s not weird, but I think you’ll find it helpful).

Historically, there was no bankruptcy income limit

Before 2005, any income earner could, in theory, file Chapter 7 bankruptcy. There was a time in those days where a single person filing bankruptcy could earn $8,000 a month after taxes and still get a discharge. The credit card companies lobbied Congress to change the law and make it harder to qualify. In response, Congress passed a bankruptcy reform called BAPCPA in 2005. One of the new provisions was to add a means test so that the more someone earned, the harder it became to qualify for Chapter 7.

What is the Bankruptcy Means Test

The bankruptcy means test is a long form that asks how much money someone has earned recently. It starts by determining a) what your “current monthly income” is. Then, it compares that to b) a median income limit for their state, for a similar-sized household. If your income is less than the magic number, you pass the means test for Chapter 7.  Consequently, you can file bankruptcy that way.

Figuring Your Current Monthly Income

Once you’ve figured out which income limit number is the standard for your state, you now need to compare against it your current monthly income. And like most things in bankruptcy, this is not as straightforward as it seems.

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types of bankruptcies chapter 7 vs 11 vs chapter 13

3 Types of Bankruptcy (2026 update)

Posted by Hale Andrew Antico on

Types of Bankruptcies: Chapter 7 vs 11 vs 13

There’s a lot of confusion about the types of bankruptcies. Firstly, some clarification on jargon. You’ll hear a lot about bankruptcy chapters. What’s a chapter? Think of it as a bankruptcy type, or a kind, or flavor. While there at least five types of bankruptcies, most people thinking about consumer personal bankruptcy will focus on just two or three bankruptcy types, or chapters, including Chapter 7 vs 11 vs 13.

The type name “chapter” just refers to the part of the Bankruptcy Code, which is Title 11 of the United States Code. For example, much of the bankruptcy laws that cover Chapter 7 bankruptcy starts at 11 U.S.C. 701, and following. The book I have on my desk literally has a section called Chapter 7 – Liquidation.

Listing the Types of Bankruptcies

Ok, so now that we have some basics out of the way, let’s take a look at the different bankruptcy types commonly used when people file bankruptcy.

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Surplus Income, Bankruptcy, and Nonconsumer or Business Debt Avoids the Maze of the Means Test

Nonconsumer Debt + No Means Test = Chap 7 Discharge? A Deep Dive

Posted by Hale Andrew Antico on

Nonconsumer Debt + No Means Test = Chap 7 Discharge? A Deep Dive

A Look at Surplus Income and Nonconsumer Debt, Skipping the Bankruptcy Means Test, and if the Case Law Leads to Chapter 7 Success

Does having primarily nonconsumer debt give someone a shortcut to Chapter 7 discharge? Generally, Chapter 7 is for people who can’t afford to repay debt. There’s a means test that makes someone eligible for Chapter 7. However, there appears to be a loophole that allows someone with primarily nonconsumer debt to skip the means test. Does that shortcut mean high-income debtors with primarily non-consumer debt are on easy street to Chapter 7 discharge?

The Issue: Why Nonconsumer Debt May Help Chapter 7 Discharge

Debt can be categorized as either consumer or nonconsumer. The big difference is if the debt is nonconsumer, you can skip the means test, and squeeze into Chapter 7 bankruptcy.

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Chapter 7 reaffirmation agreement

Chapter 7 Reaffirmation Agreement

Posted by Hale Andrew Antico on

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Chapter 7 Reaffirmation Agreement

What is a reaffirmation agreement in Chapter 7

A Chapter 7 reaffirmation agreement is where the evil creditor is trying to get you to owe money after the bankruptcy is over. This is of course a bad thing. But there’s one problem: in some cases, you have to sign the reaffirmation agreement. Note: one advantage of Chapter 13 bankruptcy is no need to reaffirm debts.

[/vc_column_text][vc_message]2023 Update: Ride-through is back in California bankruptcy, which significantly impacts the requirement to sign a reaffirmation agreement. This is due to the passage of SB 1099, which has a number of changes in California law to help debtors filing bankruptcy.[/vc_message][vc_column_text]

What does it mean to reaffirm a debt?

To reaffirm a debt is to agree with the lender that you’ll continue owing a debt. You’re basically saying, “I’m good for it.” You’re giving the creditor the power to maybe take things from you and sue you if you ever break the agreement.

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